Pearlmark Real Estate Buys Nashville Industrial Asset

The two-building industrial park came online this year. Image courtesy of JLL Capital Markets

Pearlmark Real Estate Partners has acquired Alligood Industrial Park, a 410,370-square-foot, two-building speculative complex in Lebanon, Tenn. Al. Neyer sold the Class A, newly delivered asset.

JLL Capital Markets arranged the five-year, fixed-rate $40 million acquisition loan on behalf of the borrower. A life insurance company provided the financing.

Al. Neyer announced Alligood Industrial Park in late 2021, the company’s sixth industrial project in Lebanon at the time. Completed earlier this year, the two rear-load buildings encompass 175,950 square feet and 235,200 square feet, respectively. The property features 32-foot clear heights, 135-foot truck courts, 76 dock doors and ESFR fire sprinklers, as well as some 300 car parking spots.

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Alligood Industrial Park occupies 36.4 acres at 200 Alligood Way. The property is near U.S. Route 231 and Interstate 41, roughly 30 miles east from downtown Nashville, Tenn. Companies in the surrounding area include Lifeway, Cracker Barrel and Famous Footwear, among others.

The JLL Capital Markets team included Senior Managing Directors Aldon Cole and Brian Carlton, alongside Associate Brad Vansant.

Nashville’s active industrial market

The Nashville industrial market saw $159 million in sales year-to-date as of July, with properties trading at an average $116 per square foot, according to a recent CommercialEdge report. The average rent was up 6.7 percent over a 12-month period, while the vacancy rate clocked in at 2 percent.

Nashville had approximately 4 million square feet of industrial space under construction as of July, representing 2 percent of stock. When adding planned and prospective projects, the metro’s pipeline would reach 4.5 percent of total stock.

One of the largest planned developments is Griffin Partners’ 2 million-square-foot industrial park in Lebanon, slated for completion in the third quarter of 2024. Another project will take shape in Murfreesboro, Tenn., where Distribution Realty Group eyed a 700,000-square-foot campus that will break ground in early 2024.